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Firms' Financial Choices and Thin Capitalization Rules under Corporate Tax Competition
Haufler, Andreas - 2008
Thin capitalization rules have become an important element in the corporate tax systems of developed countries. This paper sets up a model where national and multinational firms choose tax-efficient financial structures and countries compete for multinational firms through statutory tax rates...
Persistent link: https://www.econbiz.de/10012769702
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Taxation and the Optimal Constraint on Corporate Debt Finance
Birch Sørensen, Peter - 2014
interest deductibility. This paper sets up a model of corporate finance and investment in a small open economy to quantify the … would arise partly from a fall in the social risks associated with corporate investment, and partly from the cut in the …
Persistent link: https://www.econbiz.de/10013039997
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Multinational Capital Structure and Tax Competition
Wrede, Matthias - 2010
This paper analyzes tax competition when welfare maximizing jurisdictions levy source-based corporate taxes and multinational enterprises choose tax-efficient capital-to-debt ratios. Under separate accounting, multinationals shift debt from low-tax to high-tax countries. The Nash equilibrium of...
Persistent link: https://www.econbiz.de/10013143833
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Optimal Investment and Financial Strategies Under Tax Rate Uncertainty
Fedele, Alessandro - 2010
so, we depart from the relevant literature, which focuses on fully equity-financed investment project. By letting a … representative firm borrow optimally, we show that debt finance not only encourages investment activities but can also substantially … mitigate the effect of tax rate uncertainty on investment timing …
Persistent link: https://www.econbiz.de/10013144647
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Preemption, Start-Up Decisions and the Firms' Capital Structure
Moretto, Michele; Panteghini, Paolo M. - 2021
rationing on start-up investment decisions …
Persistent link: https://www.econbiz.de/10013317029
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The Capital Structure of Multinational Companies Under Tax Competition
Panteghini, Paolo M. - 2021
This article studies the relationship between debt policies of multinational companies (MNCs) and governments' tax strategies. In the first part, it is shown that the ability to shift income from high- to low-tax countries affects MNCs' financial choices. In the second part we show how MNCs'...
Persistent link: https://www.econbiz.de/10013317579
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Capacity Investment Under Demand Uncertainty - An Empirical Study of the US Cement Industry, 1994-2006
Ponssard, Jean-Pierre - 2010
implications of the theory literature on this topic in an empirical study of the US cement industry between 1994 and 2006. Firms in … these markets via both domestic production and imports. Consistent with the theory, we find a negative relationship between …
Persistent link: https://www.econbiz.de/10013138028
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Illiquidity and Under-Valuation of Firms
Gale, Douglas M. - 2012
firms' investment decisions. We characterize the conditions under which fire sales occur in equilibrium and their … consequences on firms' investment decisions. We also show that endogenous financial crises may arise in this environment, with …
Persistent link: https://www.econbiz.de/10013116475
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Investment and Financing Strategy of a Multinational Enterprise Under Alternative Tax Designs
Gerard, Marcel - 2012
multinational enterprise regarding the cross border distribution of its investment and the choice of its financing behavior. We …
Persistent link: https://www.econbiz.de/10013104836
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Migration, Capital Formation, and House Prices
Grossmann, Volker - 2013
We investigate the effects of interregional labor market integration in a two-sector, overlapping-generations model with land-intensive production in the non-tradable goods sector (housing). To capture the response to migration on housing supply, capital formation is endogenous, assuming that...
Persistent link: https://www.econbiz.de/10013085282